Division of Labour Essay Example | Topics and Well Written Essays - 1000 words

Division of Labour - Essay Example This paper highlights that people usually focus on the interests of others in pursuit of their own interest and not out of humanity. Never do we refer to our personal needs, but the interest of others. The size of the production unit is one factor that determines the division of labour. The bigger the production unit, the higher is the propensity to divide work into smaller units to increase productivity. Smaller industries do not need as much division of labour as large productions units. The nature of the industry also plays a great role in determining the extent of division of labour. Manufacturing factories will need more division in their labour than agricultural industry, where activities cannot easily be divided. From the look of things, division of labour is not driven by wisdom, but trade. Every individual who lacks something proposes to his or her neighbour to exchange what they have for what they need. Division of labour arises out treaty, barter that people acquire what they lack. Adam Smith explains with the case of a tribe of hunters or shepherds. In his example, the individual who makes bows and arrows regularly trade them for cattle or for venison with his compatriots. His productivity can increase by focusing more on his production of bows and arrows for which he exchanges for more cattle and venison.